Saxo Bank’s head of FX strategy John Hardy examines the background to the Bank of Japan’s monetary policy meeting later today.

Hardy says there is no certainty around what the BoJ will do, though the market is heavily positioned long on JPY. 

He said that it seems too early for a Japanese monetary and fiscal stimulus policy move.

Last week, the yen weakened sharply after the BoJ said it may cut the rates at which the central bank lends money to banks.